The company that owns the Stratosphere, Arizona Charlie’s and the Aquarius in Laughlin, reported its fourth-quarter and full-year earnings today.
Company: American Casino & Entertainment Properties LLC
Revenue: $84.8 million for the quarter, an 8.3 percent increase from the fourth quarter of 2013. For all of 2014, the company’s net revenue was $351.1 million, a 4 percent increase from the previous year.
Earnings: $200,000 for the quarter, compared to a net loss of $2.8 million in the fourth quarter of 2013. For the year, the company’s net income was $7 million, compared to a loss of $15.1 million the year before.
What it means: The company attributed its net revenue increase for the quarter to strong performance in its casino, hotel, and food and beverage divisions. More specifically, it said the increase was largely due to a boost in slot revenue, higher occupancy, an increase in average daily rates and resort fees, as well as higher food covers.
But some expenses impacted the company’s income from operations, including a $492,000 non-cash, share-based compensation expense.
The Stratosphere had a good fourth quarter. There, net revenue rose 10.4 percent from the year before, while room nights increased 11.5 percent and occupancy increased 8.1 percent.
The company said the Stratosphere’s 78.5 percent occupancy rate was its best fourth quarter in that category since 2009. Hotel revenue rose 23.3 percent for the quarter.
But casino revenue dropped 2.8 percent, which the company said was due to a decrease in slot coin-in and table drop. Food and beverage revenue, meanwhile, increased 15.7 percent, and tower revenue rose 4.6 percent.
At Arizona Charlie’s, net revenue increased 2.7 percent from the year before, with revenue up in the casino, hotel and food and beverage categories at both properties. The company said it saw a 2.2 percent gaming revenue increase in the Las Vegas locals market, with tables and slots both up for the quarter.
At the Aquarius, net revenue increased 10.3 percent for the quarter, with the average daily rate up 5.8 percent and casino revenue up 9.8 percent.
American Casino noted that visitation to Laughlin was up in the fourth quarter for the second year in a row, although it was still down slightly for the year. The company said that Laughlin’s 1 percent gaming revenue increase for the year was its first year-over-year improvement in that category since 2007.